DOT awards $278K for Minneapolis airport lighting upgrades, with 9 bidders vying for the contract

Contract Overview

Contract Amount: $277,694 ($277.7K)

Contractor: Chickasaw Strategic Pointe, LLC

Awarding Agency: Department of Transportation

Start Date: 2023-09-05

End Date: 2026-05-30

Contract Duration: 998 days

Daily Burn Rate: $278/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: BIL FUNDS, FUNDING FOR SITE SURVEY, DESIGN, AND INSTALL FOR REPLACEMENT PROJECT FOR MINNEAPOLIS, MN (PJL) ALS JCN: 19003442

Place of Performance

Location: SAINT PAUL, HENNEPIN County, MINNESOTA, 55111

State: Minnesota Government Spending

Plain-Language Summary

Department of Transportation obligated $277,694.45 to CHICKASAW STRATEGIC POINTE, LLC for work described as: BIL FUNDS, FUNDING FOR SITE SURVEY, DESIGN, AND INSTALL FOR REPLACEMENT PROJECT FOR MINNEAPOLIS, MN (PJL) ALS JCN: 19003442 Key points: 1. The contract value appears reasonable given the scope of site survey, design, and installation for airport lighting. 2. Strong competition with 9 bidders suggests a healthy market for these services, potentially driving competitive pricing. 3. The firm-fixed-price contract type mitigates cost overrun risks for the government. 4. This project supports critical infrastructure modernization at Minneapolis-St. Paul International Airport. 5. The contractor, Chickasaw Strategic Pointe, LLC, is positioned to deliver specialized electrical installation services. 6. The duration of the contract (998 days) aligns with the typical timeline for such infrastructure projects.

Value Assessment

Rating: good

The contract value of approximately $278,000 for site survey, design, and installation of airport lighting systems is within a reasonable range for such specialized infrastructure work. Benchmarking against similar FAA projects for airfield lighting upgrades suggests that this price point is competitive, especially considering the firm-fixed-price nature of the award. The number of bidders further supports the assessment that the pricing reflects market conditions.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with nine (9) bids received. This high level of competition indicates a robust market for electrical contractors capable of performing airport infrastructure work. The significant number of bidders suggests that the government had a wide selection of qualified vendors, which typically leads to more favorable pricing and better overall value.

Taxpayer Impact: The extensive competition ensures that taxpayer dollars are being used efficiently, as multiple companies vied to offer their best pricing and technical solutions for this essential airport upgrade.

Public Impact

The primary beneficiaries are air travelers and airlines through improved airport safety and operational efficiency. The project will deliver updated and reliable lighting systems for the Minneapolis (PJL) ALS JCN. The geographic impact is localized to the Minneapolis-St. Paul International Airport. The project will likely involve skilled electricians and technicians, supporting jobs in the construction and electrical contracting sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for schedule delays if unforeseen site conditions arise during the survey and design phases.
Reliance on a single contractor for a critical infrastructure component necessitates close monitoring of performance.

Positive Signals

Firm-fixed-price contract structure limits the government's exposure to cost increases.
Strong competition indicates a healthy vendor pool and potential for high-quality service delivery.
The project addresses a clear need for infrastructure modernization, enhancing safety and efficiency.

Sector Analysis

The Federal Aviation Administration (FAA) frequently awards contracts for airfield lighting and electrical systems to ensure the safety and efficiency of air travel. The market for these services includes specialized electrical contractors with experience in airport environments, which often have unique regulatory and operational requirements. Spending in this sector is driven by the need for infrastructure upgrades, compliance with safety standards, and technological advancements in lighting and navigation systems.

Small Business Impact

The contract was awarded under full and open competition and does not appear to have a specific small business set-aside. However, the presence of multiple bidders, which may include small businesses, suggests opportunities for subcontracting. The overall impact on the small business ecosystem will depend on whether small businesses were among the bidders or are likely to be involved as subcontractors.

Oversight & Accountability

Oversight will be managed by the Federal Aviation Administration, likely through contract officers and technical representatives who will monitor progress, ensure compliance with specifications, and review deliverables. The firm-fixed-price nature of the contract provides a degree of cost control. Transparency is facilitated by the public nature of federal contract awards, allowing for post-award review.

Related Government Programs

FAA Airport Improvement Program
Airfield Lighting Systems
Airport Infrastructure Modernization
Electrical Installation Services

Risk Flags

Potential for schedule slippage
Contractor performance monitoring required

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $277,694.45 to CHICKASAW STRATEGIC POINTE, LLC. BIL FUNDS, FUNDING FOR SITE SURVEY, DESIGN, AND INSTALL FOR REPLACEMENT PROJECT FOR MINNEAPOLIS, MN (PJL) ALS JCN: 19003442

Who is the contractor on this award?

The obligated recipient is CHICKASAW STRATEGIC POINTE, LLC.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Aviation Administration).

What is the total obligated amount?

The obligated amount is $277,694.45.

What is the period of performance?

Start: 2023-09-05. End: 2026-05-30.

What is the track record of Chickasaw Strategic Pointe, LLC with the Federal Aviation Administration?

A review of federal procurement data indicates that Chickasaw Strategic Pointe, LLC has received federal contracts, including those from the Department of Transportation. Specific details regarding their past performance with the FAA on similar airfield lighting projects would require a deeper dive into contract performance reports and award histories. However, their selection for this project suggests they met the qualifications and requirements set forth by the FAA for this specific solicitation. Further analysis could involve examining past performance evaluations, if publicly available, to gauge their reliability and quality of work on previous government contracts.

How does the awarded amount compare to similar FAA airfield lighting projects?

The awarded amount of approximately $278,000 for site survey, design, and installation of airport lighting systems is considered competitive for a project of this nature. While exact comparisons are difficult without detailed project scopes, similar FAA contracts for airfield lighting upgrades, especially those involving design and installation, can range from tens of thousands to several hundred thousand dollars, depending on the complexity, size of the area, and specific technologies involved. The firm-fixed-price structure and the high number of bidders (9) suggest that this value is aligned with current market rates for specialized electrical contracting services at airports.

What are the primary risks associated with this contract?

The primary risks associated with this contract include potential schedule delays due to unforeseen site conditions discovered during the survey and design phases, which are common in infrastructure projects. There is also a performance risk, as the government relies on the contractor to deliver high-quality installation that meets stringent FAA safety and operational standards. Given the firm-fixed-price nature, cost risk for the government is relatively low, but contractor performance issues could lead to extended timelines or the need for corrective actions. Ensuring proper oversight and adherence to specifications will be crucial to mitigate these risks.

How effective is the competition level in ensuring value for taxpayers?

The high level of competition, with nine bidders for this contract, is a strong indicator of effective price discovery and value for taxpayers. When multiple qualified vendors compete, they are incentivized to offer their most competitive pricing and robust technical solutions to win the contract. This scenario typically drives down costs compared to a sole-source or limited competition award. The FAA's decision to pursue full and open competition for this project demonstrates a commitment to leveraging market forces to achieve the best possible outcome and efficient use of public funds.

What is the historical spending pattern for similar electrical installation contracts by the FAA?

Historical spending by the FAA on electrical installation contracts, particularly for airfield lighting and related infrastructure, is substantial and ongoing, reflecting the continuous need for maintenance, upgrades, and modernization of airport facilities nationwide. Annual spending can reach hundreds of millions of dollars across various projects, from small repairs to large-scale system replacements. Contracts like this one, valued at under $300,000, represent a common segment of FAA procurement, focusing on specific site improvements or component upgrades. The agency consistently utilizes competitive bidding processes for these types of contracts to ensure value.

What are the implications of the firm-fixed-price contract type for this project?

The firm-fixed-price (FFP) contract type is highly advantageous for the government in this scenario. It establishes a ceiling price that the contractor must adhere to, regardless of their actual costs incurred. This significantly reduces the financial risk for the Department of Transportation, as it protects against potential cost overruns that could arise from unforeseen issues or inefficiencies on the contractor's part. The contractor assumes the risk of cost overruns, incentivizing them to manage their resources efficiently and complete the project within the agreed-upon budget. This structure promotes cost certainty for the taxpayer.

Industry Classification

NAICS: Construction › Building Equipment Contractors › Electrical Contractors and Other Wiring Installation Contractors

Product/Service Code: INSTALLATION OF EQUIPMENT › INSTALLATION OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 9

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2600 JOHN SAXON BLVD STE 2209, NORMAN, OK, 73071

Business Categories: 8(a) Program Participant, American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, Government, HUBZone Firm, Native American Tribal Government, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $277,694

Exercised Options: $277,694

Current Obligation: $277,694

Actual Outlays: $5,032

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 6973GH22D00008

IDV Type: IDC

Timeline